One week after news broke that the company would be going out of business, beer importer Shelton Brothers announced the cancelation of its annual festival and an inability to refund tickets to the event due to its assets being claimed by its bank.
The annual event, known as The Festival, was scheduled for October 2-3, 2020, in Charlotte, North Carolina, but was rescheduled to March 26-27, 2021, after the COVID-19 pandemic forced the cancelation of large events and gatherings.
Belcteron, Massachusetts-based Shelton Brothers announced yesterday on the company’s Facebook page that the rescheduled festival would be canceled and encouraged ticketholders to contact their credit card companies for refunds.
“When we initially postponed it to March 2021, we were cautiously optimistic that it would be no problem hosting it by then,” the company wrote. “Unfortunately it’s clear that a beer festival definitely can’t happen that soon or really at all for the foreseeable future.”
Context: As first reported by Good Beer Hunting, Shelton Brothers’ bank has forced the 24-year-old importer of European beers to liquidate its assets and cease operations.
Refund Issues: “It breaks our hearts to tell you this, but that also means that with all assets being claimed by the bank, there is no money available to give refunds,” Shelton Brothers told ticket holders on Facebook.
Tickets for The Festival went on sale March 6, 2020, days before the COVID-19 pandemic closed schools, restaurants and offices, and canceled events and sports games. General admission tickets cost $70, and bundled tickets for both sessions cost $125.
Shelton Brothers told ticket holders they should seek refunds from credit card companies. However, ticket holders reported varying success with seeking refunds. Some said the charge for tickets was reversed in minutes; others said their banks told them it would take weeks. Others still were told that because the tickets were purchased so long ago, they’ll need to submit documentation and wait several months.
What Happened: The pandemic has had wide-ranging consequences for the beer industry. Shelton Brothers’ revenue was evenly split between on- and off-premise accounts, so the loss of draft sales was catastrophic. Additionally, in May, the company was forced to pay $2.129 million to resolve a 9-year-old lawsuit against Chicago-based distributor River North. Another blow to Shelton Brothers’ bottom line was Mikkeller and Prairie Artisan Ale’s exit from its portfolio in 2018.
Why It Matters: In addition to importing world renowned European beers to the U.S. — such as Cantillon, Fantome and Westvleteren — Shelton Brothers also served as a broker for craft brewers with caché to reach larger audiences, such as Michigan-based Jolly Pumpkin Artisan Ales.
“Shelton Brothers were really instrumental in getting our brewery launched into the national spotlight,” Jolly Pumpkin co-founder Ron Jeffries told Brewbound. “As far as getting in front of distributors, having that clout to have them pay attention to us and be interested in our beers was really a result of Shelton Brothers and the respect that they had around the country.”